A company's objective and marketing strategy significantly influence its pricing. The objective defines what the company wants to achieve, which can range from maximizing profits, increasing market share, to survival in a competitive market. This objective guides the pricing strategy. For instance, if the objective is to increase market share, the company might opt for a penetration pricing strategy, which involves setting lower prices. On the other hand, if the objective is to maximize profits, the company might set higher prices for its products or services. The marketing strategy, which includes target audience analysis and understanding of the competition, also plays a crucial role. It helps the company understand what price the target customers are willing to pay and how to position the product or service in the market compared to competitors.
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